T-Mobile secures deal with California for Sprint merger clearance

Nieuws Mobiel Verenigde Staten 12 MAR 2020
T-Mobile secures deal with California for Sprint merger clearance

T-Mobile US has reached a settlement with California over its planned merger with Sprint. This was the last major regulatory hurdle for the deal and sees the mobile operator commit to jobs, coverage and pricing terms in the state. 

Under the terms of the settlement announced by the California state attorney general, T-Mobile committed to offer low-cost plans in the state for at least five years, including plans with 2 GB at USD 15 per month and 5 GB at USD 25 per month. This means also extending its commitment on rate plans to the FCC for at least another two years in California, for five years from February 2019. 

Around 10 million low-income households in the state will be eligible for 100 GB of free home broadband per year for five years and a free mobile Wi-Fi hotspot device, as well as the option to purchase select tablets at cost. 

T-Mobile also committed to offer affected employees in the state similar employment after the merger. Its total, pro forma number of employees at T-Mobile and Sprint should not decline for three years under the commitments. Around 1,000 new jobs also will be created in California with a customer service center in Kingsburg. 

In addition, T-Mobile agreed to pay California and the other states that participated in a lawsuit against the merger up to USD 15 million for their legal costs. 

Categories:

Mobiel

Companies:

Sprint,  T-Mobile US

Countries:

Verenigde Staten

Tags:

Regulations, M&A buyouts & divestments

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